Why the Keep Half Principle Works – Setting Intentional Profit Targets for Financial Clarity | E31
June 25, 2025
The Keep Half Principle: A New Standard for Sustainable Profit
Too many business owners hit their revenue goals only to discover they can barely afford their own paycheck. They cover team expenses, reinvest in growth, and absorb operational costs—yet they still feel broke.
This is why your revenue goal alone isn’t enough. You need a strategy that makes room for wealth-building, not just maintenance.
In this week’s episode of Harmonious Wealth, we’re talking about the Keep Half Principle—a framework I developed to help entrepreneurs build businesses that pay them consistently while sustaining long-term growth. This isn’t just about making more; it’s about keeping more and operating with wisdom.
It’s easy to chase a revenue number that looks good on paper. But if that number doesn’t translate into healthy profits, full compensation, and a strategic runway for growth, it’s not actually serving you.
Your revenue goal should be at least double your CEO salary. But that’s only the starting point. The true measure of financial health lies in how much you retain before paying yourself.
What is the Keep Half Principle?
The Keep Half Principle means structuring your revenue so that your business holds at least a 50% profit margin before CEO compensation.
Let’s break it down:
If your full CEO compensation (salary, taxes, benefits) is $150,000
Your business must generate at least $300,000 in profit before that salary is paid
That means your total revenue goal is likely closer to $500,000+ to sustain operations, taxes, investments, and still keep half
When implemented properly, this model creates room for:
Sustainable team hiring
Strategic growth investments
Tax and tithe planning
Peace of mind, even during seasonal revenue dips
Reflection Exercise: Are You Keeping Enough?
Take 10 minutes to walk through this reflection:
What is my current annual salary?
What is the full cost of my compensation (health, taxes, retirement)?
Am I currently keeping 50% profit before paying myself?
If not, what would need to shift—my pricing, my team costs, or my revenue goals?
Use this reflection as a starting point to reset your financial vision and lead from clarity, not survival.
Operating from Percentage, Not Emotion
One of the most practical ways to implement the Keep Half Principle is by operating from percentage-based guidelines. Here’s a basic allocation model to guide your budget:
20% to team and contractors
10% to tithing
10% to marketing
5% to professional development
5% to tools and software
50% to profit before CEO pay
This framework helps you say no to FOMO purchases, set boundaries for shiny offers, and steward your resources with intention.
Visualize the Flow
Revenue → 50% reserved profit → CEO compensation (approx. 30%) → Remaining 20% stays as actual profit
If your CEO salary alone eats up the 50%, you may need to increase your revenue target or reduce expenses to preserve a true margin.
Why This Matters Now
Scaling is not just about growth—it’s about restructuring wisely. Sometimes God invites us into seasons of pruning before expansion. Downsizing isn’t defeat. It’s often the doorway to renewal.
Whether you’re at your highest revenue or rebuilding from a pivot, this principle applies.
Financial stewardship is not seasonal—it’s spiritual.
Your Next Step: Apply the Keep Half Principle
If you want a tool to help you calculate whether you’re hitting the mark, download the Harmonious Cash Flow Planner. It will help you:
Analyze your last 6 months of spending
Identify your real profit margin
Adjust your expenses to better align with your salary and growth goals
Download it now at lovelyfinancials.com/ceo
And to go deeper, listen to the full episode of Harmonious Wealth where we walk through this framework with real-life clarity.
Listen to the episode and begin structuring your business to keep more—not just earn more.
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Weekly wisdom for faith-filled finances. Get bite-sized tips on increasing profit, leveraging tax strategy, and stewarding your cash flow—rooted in biblical truth. Build wealth, heal your money story, and lead your business from a place of overflow.
